26) Q Division had total assets of $4,000,000 and net income of $560,000 and sales of $3,000,000 and a required rate of return of 12 percent. The residual income for the period was:

Group of answer choices

$120,000

$80,000

$480,000

$360,000

27) Evaluation of cost centers usually focuses on first determining variances from standard costs or budgets and then deciding which variances to investigate. Which of the following criteria is not important when making the decision of which variances to investigate?

Group of answer choices

whether the variance is significant

whether the variance is favorable or unfavorable

whether the variance is controllable

whether the variance occurs frequently